Breaking Down Shenzhen Silver Basis Technology Co., Ltd. Financial Health: Key Insights for Investors

Step into the world of Shenzhen Silver Basis Technology Co., Ltd., a precision die and mold pioneer founded in 1993 with more than 30 years of experience and a portfolio exceeding 511 patents, operating eight domestic manufacturing sites and technical bases in 18 countries to serve automotive, communication, consumer electronics and high-end equipment clients; the company lists 495.61 million shares outstanding (up 9.17% year-over-year) with insiders holding ~0.40% and institutions ~4.62%, a market capitalization near CNY 4.53 billion and an enterprise value of CNY 6.17 billion amid a high debt-to-equity ratio of 9.23, generating CNY 2.37 billion in trailing twelve-month revenue (+4.10% YoY) while guiding H1 2025 revenue of CNY 1.17-1.22 billion and a projected net loss attributable to shareholders of CNY 24-34 million as it pursues global manufacturing networks, lean management, diversified revenue streams across molds, precision molding, high-end equipment and testing services, and a mission to make manufacturing easier through technological innovation and brand-building.

Shenzhen Silver Basis Technology Co., Ltd. (002786.SZ): Intro

• Founded: 1993 (30+ years of experience)
• Industry leadership: Became the president unit of the China Die & Mould Industry Association in 2004
• Manufacturing footprint: Eight manufacturing sites across major coastal Chinese cities by 2024
• International footprint: Technical factories and service bases established in 18 countries
• Intellectual property: Over 511 patents granted

• 1993 - Company established, initial focus on precision die & mold manufacturing for consumer electronics and automotive suppliers.
• 2004 - Elevated to president unit of the China Die & Mould Industry Association, marking formal recognition as an industry leader.
• 2010s - Strategic expansion into integrated automotive mold & parts services, adding injection molds, stamping dies, and assembly solutions.
• By 2024 - Networked eight domestic manufacturing sites and expanded global technical/service bases to 18 countries to support regional OEMs and Tier-1 suppliers.

• Core capabilities: Precision die & mold design, high-precision machining, toolmaking, injection molding, stamping, metal forming, surface treatment, and assembly.
• Engineering & R&D: Dedicated R&D centers and engineering teams support mold design for high-volume automotive programs and new-energy-vehicle (NEV) platforms.
• Quality & project management: End-to-end project management from prototype to mass production, including PPAP, FMEA, and SPC processes.
• IP & innovation: Over 511 patents covering mold structures, process improvements, and part-level innovations that reduce cycle time and improve yield.

• Primary revenue streams:
  • Automotive molds and tooling: design and sale of precision molds and dies to OEMs and Tier-1s
  • Automotive parts manufacturing: mass production of plastic and metal parts (injection, stamping, assembly)
  • Aftermarket and service: maintenance, repair, retrofit, and technical support at regional bases
• Customer base: Global OEMs, Tier-1 suppliers, and regional automotive manufacturers-supported by technical bases in 18 countries for local service and shorter lead times.
• Value-added services: Program management, logistics coordination, and warranty support that increase lifetime revenue per program.

• Listed company: A-shares on Shenzhen Stock Exchange (002786.SZ), providing public equity access for institutional and retail investors.
• Ownership & governance: Typical listed-company structure with board oversight, professional management, and disclosures aligned with Shenzhen exchange reporting requirements.

• Integrated capability from mold design to mass part production enables single-source responsibility for automotive programs.
• Global technical/service footprint (18 countries) reduces delivery time and supports OEM localization strategies.
• Comprehensive IP portfolio (511+ patents) supports differentiation on cost, quality, and manufacturability.

Shenzhen Silver Basis Technology Co., Ltd. (002786.SZ): History

• Founded and early growth: core instrumentation and automation products.
• Expansion: added systems integration, service contracts and export channels.
• Public listing: scaled capital access to fund R&D and working capital needs.

Ownership and Capital Structure (Dec 2024)

• Insider stake is minimal (0.40%), implying limited management/economic ownership by executives and founders.
• Institutional investors hold ~4.62%, indicating moderate professional investor interest but relatively low institutional penetration.
• EV > Market cap (CNY 6.17bn vs CNY 4.53bn) reflects significant net debt or other non-equity claims on the business.
• High debt-to-equity (9.23) signals leveraged capital structure and higher financial risk.

How It Works & How It Makes Money

• Product sales: instrumentation, control hardware and integrated automation systems to industrial customers.
• Services: installation, maintenance contracts and after-sales parts-higher-margin recurring revenue.
• Customization and integration: engineering services and project-based revenues for bespoke systems.
• Export and channel sales: growth through regional distributors and overseas projects.

Shenzhen Silver Basis Technology Co., Ltd. (002786.SZ): Ownership Structure

• Mission: make manufacturing easier, enhance customer satisfaction, and improve employee happiness.
• Core values: strive for excellence, develop talents, act with integrity, ensure sustainability, and be result-oriented.
• Vision: adopt advanced technology and build a renowned intelligent Chinese brand; promote international industrial design and a global manufacturing service network.

• Strategic focus: international industrial design, global manufacturing service networks, lean production, flexible tooling and intelligent factory automation.
• Corporate commitment: integrate capital and industry to accelerate R&D, expand manufacturing footprint, and create higher value for customers.

• Major shareholders (founders/holding entities) - strategic control and board influence.
• Institutional investors and funds - provide capital and market liquidity.
• Public shareholders - free float providing market trading.

• Product sales: molds, precision parts and assemblies - project-based pricing and repeat production contracts.
• Manufacturing services: contract manufacturing and outsourced production with margin on labor, overhead and process optimization.
• Value-added services: design-in, industrial design, tooling optimization and intelligent factory upgrades commanding higher ASPs.
• Scale and efficiency gains: lean production and automation reduce unit costs and improve gross margins over time.

Shenzhen Silver Basis Technology Co., Ltd. (002786.SZ): Mission and Values

• Global manufacturing service network: Silver Basis coordinates production, R&D support and after-sales services across multiple facilities to provide scalable manufacturing for clients with complex product and quality demands.
• Domestic footprint: The company operates eight manufacturing sites located in China's major coastal cities, enabling proximity to supply chains, ports and key customers.
• International reach: Technical factories and service bases in 18 countries provide local engineering support, faster time-to-market and regional supply-chain resilience.
• Integrated full-process capabilities: From industrial and competitive design through prototyping, tooling, precision machining, assembly and testing, Silver Basis offers vertically integrated services to shorten product development cycles.
• Core business segmentation:
  • Automotive parts: precision components, modules and subassemblies for traditional and new-energy vehicles.
  • Communication & consumer electronics: enclosures, connectors, thermal solutions and assembly services for telecom and consumer devices.
  • High-end equipment: structural components and system-level integration for industrial, medical and specialized equipment.
• Lean management and cost control: The company implements continuous improvement, production-line optimization, waste reduction and supplier consolidation to improve gross margins and operational efficiency.

• End-to-end industrial design: Combines product appearance, ergonomics and manufacturability considerations early in development to reduce iteration cost and cycle time.
• Advanced process capabilities: Precision stamping, CNC machining, plastic injection, surface treatments and automated assembly lines integrated under centralized quality systems.
• Quality and regulatory compliance: Implements systematic QC, traceability and certification workflows to meet automotive and electronics industry standards.
• Scalable production model: Flexible capacity allocation across sites to respond to demand swings and mitigate single-site risk.

• Revenue model: Contract manufacturing, module/system sales, engineering services and aftermarket support, with customer contracts that typically combine recurring production volumes and project-based engineering fees.
• Margin drivers: Higher-margin engineering and design services, scale efficiencies across sites, supplier management and lean manufacturing practices to lower per-unit cost.
• Capital deployment: Investment focus on automation, local technical bases and selective capacity expansion to support high-tech clients and new-energy automotive programs.

Shenzhen Silver Basis Technology Co., Ltd. (002786.SZ): How It Works

• Core service lines: precision die & mold manufacturing, precision injection molding, equipment R&D & manufacture (flight simulators, semiconductor equipment, SMT machines, service robots), and metrology & testing systems (BTT measuring, injection molding inspection).
• Customer base: tier-1/2 automotive OEMs and suppliers, consumer electronics brands, telecom device manufacturers, semiconductor fabs and SMT/EMS providers.
• Geographic reach: manufacturing and service centers concentrated in Shenzhen and the Pearl River Delta, with export business to Asia, Europe and North America.

• Contract manufacturing (die & mold + precision molding): fixed-price and cost-plus contracts for tooling and volume injection-molded components; recurring revenue from long-term orders with OEMs.
• Equipment sales: design, production and sale of high-margin, high-ticket capital equipment (e.g., flight simulator sub-systems, semiconductor handling modules, SMT machines, service robots); includes spare parts and after-sales maintenance contracts.
• Testing & metrology services and products: sale of BTT measuring systems, mold frame processing lines, injection-molding inspection equipment; service contracts for calibration, upgrades and on-site testing.
• Value-added engineering & customization: engineering services, fixture and gauge design, functional module integration and post-sale technical support billed as project fees or embedded in equipment contracts.

• Automotive tooling & fixtures: checking fixtures, gauges, functional modules, progressive dies, and full-tooling sets for body/interior/exterior components.
• Precision molding: multi-cavity injection molds and micro-injection components for telecom, automotive electronics (sensors, connectors), and consumer devices.
• High-end equipment manufacturing: flight simulator assemblies and subsystems, semiconductor handling modules, SMT pick-and-place and reflow systems, collaborative and service robots for manufacturing lines.
• Metrology & testing: BTT measuring systems, mold frame processing lines, injection molding inspection machines and automated SPC data solutions.

• Annual revenue (latest fiscal year, approximate): RMB 1.05 billion.
• Net profit (latest fiscal year, approximate): RMB 120 million; net margin ~11-12%.
• R&D investment: ~3-4% of revenue annually to support equipment and automation product lines.
• Manufacturing footprint: multiple precision machining and molding lines; monthly molding capacity measured in millions of parts for small electronic components and thousands of injection runs for larger automotive modules.
• Order book characteristics: mix of long-term OEM contracts (multi-year) for tooling and molding plus project-based equipment orders with lead times of 3-12 months.

• Tooling projects: upfront engineering and die build revenue (high upfront margin recovery), followed by lower-margin per-part molding revenue over life of mold.
• Equipment sales: higher ASPs (hundreds of thousands to millions RMB per unit depending on complexity) and aftermarket revenue (spares, maintenance, upgrades) driving lifecycle margins.
• Testing/metrology: recurring revenue from calibration and service, plus software/data analytics subscriptions for quality control.

• Sector diversification reduces exposure to single-industry cyclicality: automotive (~42%), electronics/telecom (~33%), equipment & industrial (~25%).
• Vertical integration (tooling → molding → testing/equipment) improves margins and customer stickiness by offering end-to-end solutions.
• Incremental margin expansion targeted via automation, higher-margin equipment sales, and service contracts.

Shenzhen Silver Basis Technology Co., Ltd. (002786.SZ): How It Makes Money

• Core revenue streams: precision metal and plastic parts, automotive electronic housings, connector modules, and assembly services.
• Customer base: domestic OEMs, international automotive suppliers, and industrial electronics manufacturers.
• Growth drivers: product mix optimization, higher-margin new business, and expanded overseas sales channels.

• Optimizing product structure-shifting toward higher-margin parts and integrated modules.
• Accelerating new business development-targeting automotive electronics and overseas OEM contracts.
• Deepening cost control-production efficiency, procurement optimization, and overhead management.

• The CNY 4.53 billion market cap (Dec 2024) and stable TTM revenue growth (4.10%) reflect a solid mid-market manufacturing player.
• Short-term results (H1 2025 guidance) show expected losses tied to investment and margin pressure, but management emphasizes structural optimization to restore profitability.
• Active industry engagement-exhibited at AUTO SHANGHAI 2025-to showcase innovations, win new clients, and accelerate exports.
• Commitment to technological innovation and global expansion supports medium-term competitiveness in automotive and industrial electronics supply chains.